Custodians divided on new rules

Hong Kong changed its short-selling rule last week. This has divided global custodians, acting as agent lenders, who are now deciding whether they will continue to 'hold' stocks for borrowers intending to finance short trades.

For the foreseeable future, Deutsche Bank has decided to stop this service and Royal Trust is discussing the issue internally. Chase Manhattan and Mellon Bank are up and running to produce the required documentation for both holds and loans of stocks.